How to Buy Property in Italy in 2026: Complete Guide for Americans & Foreigners

Buying property in Italy as a foreigner is entirely possible and, in most cases, straightforward. Italy welcomes international buyers with no blanket restrictions on foreign ownership. However, understanding the legal, tax, and residency framework before you commit is essential. 

Italy continues to attract buyers from across the world. According to Gate-Away’s 2024 report, Americans account for roughly 30% of all foreign property inquiries in Italy, making them the single largest group of international buyers. Accessibility is a key driver: over 41% of foreign buyers search for properties priced under €100,000, proving that buying property in Italy does not require an outsized budget.

At Lexidy, we have guided hundreds of international clients through this process. In this blog, we’ll cover eligibility for foreign nationals, the step-by-step buying process, taxes and costs, mortgage options, residency and citizenship implications, and the best regions for foreign buyers in 2026.

(Article Updated April 2026)

Can Foreigners Buy Property in Italy?

Yes, foreigners can buy property in Italy. Americans, UK citizens, Canadians, Australians, and most nationalities can purchase any type of property, including residential, commercial, and agricultural, thanks to reciprocity agreements between Italy and their home countries. EU and EEA citizens face no restrictions at all.

The one requirement that applies to every buyer, regardless of nationality, is obtaining a Codice Fiscale (Italian tax identification number).

The Reciprocity Principle Explained

Italy applies a reciprocity principle to foreign property ownership. Under this framework, Italy grants property rights to citizens of countries that equally allow Italian nationals to purchase property abroad. The US, UK, Switzerland, and Brazil all have active reciprocity agreements with Italy. The Italian Ministry of Foreign Affairs periodically verifies and updates this list.

One important exception applies to non-EU nationals who already hold a valid Italian residence permit. These buyers can purchase property in Italy without any reciprocity check, regardless of their home country’s policies.

Can Americans Buy Property in Italy?

Americans can buy property in Italy and hold the same ownership rights as Italian citizens under the bilateral reciprocity agreement. There are no restrictions on property type: US citizens can purchase residential homes, commercial units, agricultural land, or development plots.

Crucially, there is no requirement to be an Italian resident or hold a visa before completing a purchase. US citizens buying property in Italy can do so entirely from abroad.

Can UK Citizens Buy Property in Italy?

UK citizens can buy property in Italy under the same reciprocity framework that applied before Brexit. The UK’s departure from the EU did not remove property ownership rights for British nationals.

Reciprocity between the two countries remains in place, meaning UK buyers face no additional barriers compared to the pre-Brexit period. For a detailed breakdown of what Brexit means for the full buying and residency process, check out our dedicated guide to buying property in Italy after Brexit.

Can EU Citizens Buy Property in Italy?

EU and EEA citizens face no restrictions whatsoever when purchasing property in Italy. They hold the same rights as Italian nationals, with no reciprocity checks required. The process is administratively simpler for EU citizens, though the core steps, including obtaining a Codice Fiscale and instructing a notary, remain the same.

How to Buy Property in Italy: Step-By-Step Process

The property buying process in Italy typically takes 2 to 4 months from initial search to final closing. The key stages are: property search, obtaining your Codice Fiscale, opening an Italian bank account, making a preliminary offer (proposta d’acquisto), signing the preliminary contract (compromesso) with a deposit of 10 to 30%, completing due diligence, and finalizing the purchase before a notary with the final deed (rogito).

Step 1 – Property Search and Due Diligence

Begin by defining your budget, preferred region, and property type. Licensed platforms such as Immobiliare.it and Casa.it are the most widely used in Italy. Working with a locally licensed real estate agent is advisable, particularly for foreign buyers unfamiliar with regional markets. Budget 4 to 8 weeks for search and viewings.

Before making any offer, verify the property’s legal status. This means confirming there are no outstanding mortgages, unpaid taxes, or planning violations attached to the title. A property lawyer can conduct this check against the Land Registry (Catasto) and the Mortgage Registry (Conservatoria).

Step 2 – Obtain Your Codice Fiscale

The Codice Fiscale is Italy’s tax identification number. Every buyer, regardless of nationality, must obtain one before completing any legal or financial transaction in Italy. You can apply at the nearest Italian consulate in your home country or directly at an Agenzia delle Entrate office in Italy. It is issued free of charge and, in most cases, on the same day.

Step 3 – Make a Preliminary Offer (Proposta d’Acquisto)

Once you identify a property, you submit a written preliminary offer to the seller, typically accompanied by a small good-faith deposit. This offer becomes legally binding once the seller accepts and countersigns. At this stage, it is important to include conditions covering the outcome of due diligence and any agreed repairs or inclusions.

Step 4 – Sign the Preliminary Contract (Compromesso)

The compromesso is a legally binding agreement between buyer and seller that locks in the terms of the sale. At signing, the buyer pays a deposit of 10 to 20% of the agreed purchase price, known as the caparra confirmatoria.

If the seller withdraws after this point, they must return double the deposit. If the buyer withdraws, the deposit is forfeited. The compromesso outlines the final price, completion timeline, and any conditions that must be met before closing.

Step 5 – Final Deed (Rogito) Before a Notary

The rogito is the official deed of sale and the final step in the Italian property purchase process. It is signed before a public notary (notaio), who is a neutral legal official appointed by the Italian state.

At this stage, the buyer pays the remaining balance, all applicable taxes, and notary fees. The notary then registers the deed with the Land Registry, formally transferring ownership.

Buying from Abroad – Power of Attorney

Foreigners buying property in Italy do not need to be present in person at every stage. You can grant Power of Attorney (PoA) to an Italian lawyer to act on your behalf throughout the process. This covers the preliminary offer, the compromesso, and the final rogito.

The PoA document must be notarized and apostilled in your home country before it is valid in Italy. This arrangement is particularly common among Americans buying property in Italy and other non-EU buyers who cannot travel for each stage of the transaction.

Taxes and Costs of Buying Property in Italy

Total closing costs when buying property in Italy typically range from 10 to 15% of the purchase price. The main taxes are Registration Tax (2% for a primary residence, 9% for a second home) or VAT of 4 to 22% for new builds purchased from a developer.

On top of taxes, buyers should budget for notary fees of 1 to 2%, real estate agent commission of 3 to 6%, and fixed cadastral and mortgage taxes. Annual costs include IMU municipal tax on second homes and TARI waste collection tax.

Taxes at Purchase

When buying property in Italy from a private seller, Registration Tax is the primary tax. It is calculated on the cadastral value, not the market price, which is typically lower. The rate is 2% for buyers declaring the property as their primary residence and 9% for second homes or investment purchases. Cadastral and mortgage taxes are fixed at €50 each for private transactions and at €200 each for purchases from a developer.

When purchasing a new build directly from a developer, VAT (IVA) replaces Registration Tax. The rate is 4% for a primary residence, 10% for a standard property, and 22% for luxury-classified properties. Notary fees typically fall between 1 and 2% of the purchase price and are non-negotiable in the sense that a notary is legally required. Real estate agent commission in Italy is paid by both buyer and seller, typically at 3 to 6% each.

Ongoing Annual Taxes

Second home owners pay IMU, Italy’s municipal property tax, at a rate set by the local municipality between 0.4% and 1.06% of the cadastral value. Primary residences are exempt from IMU. TARI, the waste collection tax, applies to all property owners and is calculated based on property size and location.

Owners who rent out their Italian property have two options for declaring rental income. The first is the standard IRPEF income tax system, applied at progressive rates. The second is the cedolare secca flat tax regime, which applies at 21% for long-term rentals or 26% for short-term rentals. The cedolare secca is generally more straightforward and tax-efficient for most foreign landlords.

US Tax Implications for American Buyers

Owning property in Italy as an American does not, by itself, trigger US tax obligations. However, several reporting requirements apply once you generate income or hold foreign financial assets. Rental income and capital gains from the sale of Italian property must both be reported to the IRS. The US-Italy tax treaty helps prevent double taxation, though the treaty’s savings clause means US citizens remain subject to US tax rules on most income regardless.

Two key reporting thresholds apply. FBAR filing is required if the total balance across your foreign financial accounts exceeds $10,000 at any point during the calendar year. Form 8938 under FATCA applies if your total foreign assets exceed $200,000 for expats living abroad, or $50,000 for US residents. Failure to file either form carries significant penalties, so working with a cross-border tax adviser is strongly recommended.

Tax Incentives and Deductions

Italy offers several meaningful incentives that foreign property buyers should be aware of. The renovation bonus allows buyers to deduct 50% of renovation costs up to €96,000 from Italian income tax. The Ecobonus provides a deduction of up to 65% for qualifying energy-efficiency upgrades to existing properties.

Two flat tax regimes are particularly relevant for foreign retirees and high-net-worth individuals. The 7% flat tax applies to foreign pension and income for retirees who relocate to qualifying southern Italian towns with fewer than 20,000 inhabitants.

The €100,000 flat tax regime applies to new Italian tax residents and covers all foreign-sourced income, regardless of amount, for up to 15 years. Both regimes offer substantial tax savings for the right buyer profile.

Mortgage and Finance Options for Foreign Buyers

Foreign buyers can obtain mortgages in Italy. Italian banks typically finance 10 to 30% of the property value for non-residents, with fixed interest rates ranging from 3.5 to 5.5% in 2026.

To qualify, you will need proof of income, a valid Codice Fiscale, an Italian bank account, and sworn translations of all foreign documents.

For buyers who prefer to avoid the Italian mortgage process entirely, alternatives include cash purchases, US-based financing, or equity release from property already owned in your home country.

Italian Mortgages for Non-Residents

Non-resident foreign buyers in Italy can access mortgage financing, though on slightly more conservative terms than Italian residents. Fixed interest rates for non-residents currently sit between 3.5 and 5.5% in 2026.

Variable-rate mortgages are also available and are typically linked to the Euribor benchmark rate. Fixed rates offer greater predictability for Americans buying property in Italy who are managing cross-currency budgets.

One additional cost to factor in is the mortgage tax, which is 0.25% of the loan amount for a primary residence and 2% for a second home or investment property.

Required Documents for a Mortgage Application

Italian banks require a consistent set of documents from foreign applicants. The core requirements are:

All foreign documents must be translated into Italian by a certified translator and sworn before an Italian consulate or court. The bank will also commission an independent property valuation (perizia) before approving any loan. Budget 4 to 8 weeks for the full mortgage approval process once all documents are submitted.

Alternative Financing Options

Cash purchase is the most common route for foreigners buying property in Italy, particularly at lower price points. Over 41% of foreign buyers search for properties under €100,000, a level where cash transactions are straightforward and eliminate mortgage processing time entirely.

For buyers who own property in the US, UK, or elsewhere, a home equity loan or home equity line of credit (HELOC) against an existing property can provide competitive financing without involving Italian banks. This approach avoids foreign document requirements and can often be arranged more quickly.

Interest on a US home equity loan used to purchase foreign property may be deductible in certain circumstances; a cross-border tax adviser can confirm eligibility.

Seller financing is rare in the Italian market, but not unheard of in rural areas or for unconventional properties. In these cases, the buyer pays the seller directly over an agreed schedule rather than through a bank. Legal advice is essential before entering into any seller-financed arrangement.

Can You Get Residency or Citizenship by Buying Property in Italy?

No. Buying property in Italy does not automatically grant residency or citizenship. Italy does not operate a Golden Visa program tied to standard real estate purchases. Property ownership can, however, support your application for certain visa types by satisfying the accommodation requirement.

For those seeking residency in Italy through investment, the Italy Investor Visa requires a minimum investment of €250,000 in Italian startups, not in real estate. Italian citizenship requires 10 years of continuous legal residence, demonstrated B1-level Italian, and a clean criminal record.

Italy permits dual citizenship, so renunciation of your current nationality is not required.

Can You Get Residency in Italy if You Buy Property?

Buying property in Italy does not grant residency. Without a valid Italian visa or residence permit, foreign nationals remain subject to the standard 90-day Schengen rule, regardless of whether they own property. Americans, Canadians, Australians, and other non-EU nationals cannot simply stay in Italy year-round on the basis of property ownership alone.

That said, owning property in Italy strengthens your position when applying for the Elective Residence Visa. This visa is designed for financially independent individuals who wish to live in Italy without working. One of its core requirements is proof of suitable accommodation in Italy, which property ownership directly satisfies.

For a full breakdown of eligibility, income thresholds, and the application process, see Lexidy’s dedicated guide to the Italian Elective Residence Visa.

Italy Investor Visa (Golden Visa)

Italy does operate an investor visa program, but it is not linked to real estate purchases. The Italian Investor Visa grants a 2-year residence permit, renewable, to applicants who make one of the following qualifying investments:

The permit covers the main applicant and qualifying family members. After 5 years of legal residence on the investor visa, applicants can apply for long-term EU residence. After 10 years, Italian citizenship becomes accessible.

Can You Get Italian Citizenship by Buying Property?

Buying property in Italy does not lead to Italian citizenship. There is no direct route from property ownership to a passport. The standard naturalization route requires 10 years of continuous, legal residence in Italy.

Applicants must also demonstrate B1-level proficiency in Italian, show evidence of integration, and hold a clean criminal record in both Italy and their home country.

One significant advantage of Italian citizenship is that Italy permits dual nationality. US citizens, UK citizens, and most other foreign nationals do not need to renounce their existing passports to acquire an Italian one.

This makes the naturalization route genuinely attractive for long-term residents who have built a life in Italy through property ownership, employment, or retirement.

Best Regions to Buy Property in Italy for Foreigners

Italy’s property market ranges from €1 homes in Sicilian inland villages to multi-million-euro villas on Lake Como. The most popular regions among foreign buyers in Italy are Tuscany, Puglia, Sicily, the Amalfi Coast, Lake Como, Liguria, and the emerging markets of Abruzzo, Marche, and Molise. Each region offers a distinct lifestyle, price point, and investment profile.

Tuscany

Tuscany remains the most iconic destination for foreign buyers purchasing property in Italy. The region draws buyers seeking farmhouses (case coloniche), restored vineyards, and medieval hilltop villages.

Demand is consistently high among Americans and northern Europeans. Prices reflect that sustained demand: expect to pay €150,000 for a property requiring significant restoration and upwards of €1,000,000 for a turnkey farmhouse in Chianti or the Val d’Orcia.

Legal due diligence is particularly important in Tuscany, as many rural properties carry complex planning histories and agricultural land restrictions.

Puglia

Puglia has emerged as one of the most sought-after regions for foreigners buying property in Italy over the past decade. The region offers a distinctive property stock, including trulli (traditional dry-stone dwellings), masserias (fortified farmhouses), and whitewashed townhouses in villages like Ostuni and Locorotondo.

Prices remain more accessible than in Tuscany, with entry-level properties available from €80,000. A growing international expat community and direct flight connections to major European hubs have accelerated demand from UK, Dutch, and American buyers.

Sicily

Sicily is increasingly popular with Americans buying property in Italy, particularly in towns like Ragusa, Noto, and the hill villages of the interior.

The island is best known internationally for its €1 home schemes, where municipalities sell abandoned properties at symbolic prices to attract new residents and reverse depopulation. These schemes require buyers to commit to renovation within a set timeframe, typically 3 years, and invest a minimum amount, often €15,000 to €50,000, in works.

Beyond the headline schemes, Sicily offers genuine value: over 41% of foreign buyers in Italy search for properties under €100,000, and Sicily delivers more options in that bracket than almost any other region.

Amalfi Coast and Lake Como

Both the Amalfi Coast and Lake Como sit firmly in the luxury segment of the Italian property market. Properties here typically start at €500,000 and regularly exceed €5,000,000 for premium positions. Rental income potential is high in both areas, given their international profile and year-round tourism.

Lake Como attracts a significant number of buyers from Switzerland and northern Europe, while the Amalfi Coast draws American and Middle Eastern buyers seeking an iconic coastal lifestyle. Inventory is limited in both markets, and competition for well-positioned properties is strong.

Abruzzo, Marche, and Molise

These three central and southern regions represent the strongest value proposition in the current Italian property market for budget-conscious buyers and remote workers. Historic stone properties, restored village homes, and rural farmhouses are available from €50,000 to €200,000.

The pace of life is slower, the landscapes are dramatic, and the cost of living is significantly lower than in Tuscany or the coastal south. Several municipalities in these regions have introduced additional tax incentives for new residents, including reduced income tax rates for those relocating from abroad.

For retirees and remote workers seeking authentic Italian life at an accessible price point, Abruzzo, Marche, and Molise deserve serious consideration.

Essential Tips for Buying Property in Italy as a Foreigner in 2026

Hire a Property Lawyer

Many foreign buyers in Italy assume the notary will protect their interests. This is a critical misunderstanding. The Italian notary (notaio) is a state-appointed official whose role is to verify the deed and ensure the transaction complies with the law.

They do not represent the buyer or the seller. Independent legal counsel is essential for conducting due diligence, reviewing the preliminary contract, identifying planning or title issues, and protecting your position throughout the transaction.

This is especially important for Americans buying property in Italy and other non-EU buyers who are unfamiliar with Italian property law.

A specialist property lawyer can identify risks that a standard search will not surface, including informal rights of way, agricultural land restrictions, and unpermitted renovations. Lexidy’s Italian property lawyers work with international buyers at every stage of the purchase process.

Budget for Hidden Costs

The purchase price is only part of your total investment. Foreigners buying property in Italy should budget an additional 10 to 15% above the agreed price to cover taxes, notary fees, agent commissions, and legal costs. For older or rural properties, renovation costs can add significantly to this figure.

A property listed at €150,000 may require €30,000 to €60,000 in structural or cosmetic works before it is habitable to northern European or American standards. Always commission an independent structural survey before signing the compromesso.

Short-Term Rental Regulations

If you are buying property in Italy as an investment with rental income in mind, check local regulations before committing. Florence, Venice, and Rome are all tightening restrictions on short-term tourist rentals in 2026. Florence has introduced new zoning rules that limit Airbnb-style lettings in the historic center.

Venice continues to restrict new tourist rental licenses in high-pressure areas. Rome is reviewing its own framework. Purchasing in these cities without confirming your property’s rental eligibility could significantly affect your projected returns.

Language and Cultural Considerations

All legal documents, notary proceedings, and official correspondence in Italy are conducted in Italian. Foreign buyers should not rely on informal translations or assume that signing documents they do not fully understand is standard practice.

Sworn translations are legally required for all foreign-language documents submitted as part of a property transaction. Working with a bilingual property lawyer eliminates this risk. They can explain the content and implications of each document in your language before you sign, and flag any terms that deviate from standard practice.

Frequently Asked Questions About How to Buy Property in Italy

Can Americans Buy Property in Italy?

Yes. Americans can buy property in Italy under the bilateral reciprocity agreement between the US and Italy. There are no restrictions on property type, and no visa or residency is required to purchase.

Can US Citizens Buy Property in Italy?

Yes. US citizens can buy property in Italy and hold the same ownership rights as Italian nationals. The only requirement is obtaining a Codice Fiscale before completing the transaction.

Can Foreigners Buy Property in Italy?

Yes. Foreigners can buy property in Italy provided their home country has a reciprocity agreement with Italy. EU citizens face no restrictions at all. Non-EU nationals already holding an Italian residence permit can also purchase freely.

Can You Get Italian Citizenship by Buying Property?

No. Buying property in Italy does not grant citizenship. Italian naturalization requires 10 years of continuous legal residence, B1-level Italian, and a clean criminal record.

Can You Get Residency in Italy if You Buy Property?

No. Property ownership alone does not grant residency. However, it supports your application for the Elective Residence Visa by satisfying the accommodation requirement.

How Much Are Closing Costs When Buying Property in Italy?

Total closing costs typically range from 10 to 15% of the purchase price, covering registration tax, notary fees, agent commission, and legal costs.

Do I Need a Visa to Buy Property in Italy?

No. Foreigners can buy property in Italy without holding a visa or residence permit. However, you will still be subject to the Schengen 90-day limit when visiting Italy without a visa.

Can I Get a Mortgage in Italy as a Foreigner?

Yes. Italian banks lend to non-residents, typically financing 10 to 30% of the property value. You will need proof of income, a Codice Fiscale, and sworn translations of all foreign documents.

What Is the Cheapest Region to Buy Property in Italy?

Abruzzo, Molise, and inland Sicily offer the most affordable entry points, with properties available from €50,000. Sicily’s €1 home schemes offer the lowest headline prices but require investment in renovations.

Do I Need to Pay US Taxes on Italian Property?

Owning property in Italy as an American does not, by itself, trigger US taxes. However, rental income and capital gains must be reported to the IRS, and FBAR or FATCA reporting may apply depending on your foreign account balances and asset values.

Need Legal Support with Buying a Property in Italy?

Buying property in Italy as a foreigner is entirely achievable in 2026. The legal framework is welcoming, reciprocity agreements cover most nationalities, and the market offers options across a wide range of budgets. Americans, UK citizens, and most other foreign buyers can purchase freely without needing a visa or residency permit.

Property ownership does not grant residency or citizenship, but it can support a broader Italian immigration strategy. Understanding the tax implications in both Italy and your home country before you commit is equally important.

The most common mistakes foreign buyers in Italy make are underestimating closing costs, misunderstanding the notary’s role, and proceeding without independent legal representation.

If you are considering buying property in Italy and want clarity on your legal, tax, and residency options, Lexidy’s trusted team of Italian real estate lawyers is here to help. Fill out the form below, and one of our Italy immigration experts will be in touch to discuss your situation.